Boy Scouts loses Disney funding over gay policy

A sign for the National Office for the Boy Scouts of America is shown in this undated file photo.

March 3, 2014 12:00:00 AM PST

LOS ANGELES --

The Walt Disney Company is cutting funding to the Boy Scouts of America next year over the organization's ban on gay leaders.

Disney does not provide direct funding to the Boy Scouts, but it donates money to some troops through an employee volunteer program.

A Boy Scouts spokesman said in a statement on Sunday that the organization is "disappointed" by the decision and claims the cut will impact its ability to serve children.

"We believe every child deserves the opportunity to be a part of the Scouting experience and we are disappointed in this decision because it will impact our ability to serve kids," said spokesman Deron Smith.

A ban on gay scouts was lifted last year, but a ban on openly gay leaders remains.